| While single-family homes are experiencing hyper-competition, today’s condo market might be more favorable to buyers. Here are a few negotiation tips agents should know to maximize their clients' purchase.
1. Evaluate the seller’s position
Understand the seller’s situation. A few telltale hints of a weak seller position is extended time on the market and price reductions. Learn what the seller’s needs are before entering negotiations.
2. Manage the financials
Mortgage preapprovals are essential before placing an offer, as is saving enough for at least a 3 percent down payment. A preapproval shows the seller you’re a serious buyer and can move very quickly if interested, increasing the buyers’ standing to act in negotiations.
3. Inspections
Inspections are fantastic opportunities to learn about the space and also identify non-statutorily required inspection negotiables.
Condo inspections can uncover water damage, furnace problems, unpleasant smells and mold issues. Sellers are far more likely to negotiate over non-cosmetic issues like furnace problems, flooring issues, minor water damage and more.
4. Calculate potential costs for repairs
Use the inspector’s report to estimate how much it will cost you to repair the home if you purchase it. While sellers may not deduct the full estimated amount from the purchase price, your ask is far more likely to be taken seriously with third-party credibility.
Be somewhat conservative with the estimated costs to build trust with the seller and their agent so that your ask is more palatable.
Remember, the final negotiated price including closing costs must add up to the appraisal or the lender won’t approve the loan — or you will need to bring more cash to closing.
Call us at (480) 205-2234 to get your preapproval and also discuss the mortgage options available to you.
|
